Kitex Garments Surges After Telangana Government Approves Expansion Plan

Kitex Garments Surges After Telangana Government Approves Expansion Plan

Shares of the world’s second largest producer of children’s apparels, Kitex Garments, rose as much as 10 per cent to hit an intraday high of ₹ 164.10 a day after the company informed exchanges that the government of Telangana approved its expansion plan. The company in July informed exchanges that it was invited by the Telangana Government for discussions on potential investment opportunities in the state.

Kitex Garments plans to invest ₹ 1,000 crore in Telangana and expects its capacity to double in the next two yearsKitex.

Garments cited ease of doing business, utilisation of better logistics and infrastructural facilities, incentive and subsidy schemes from the government, proximity to raw material sources and reduced cost of labour as some of the reasons behind its investment plan